PUBLISHER: Acute Market Reports | PRODUCT CODE: 1615231
PUBLISHER: Acute Market Reports | PRODUCT CODE: 1615231
The tire cord fabric market pertains to the realm of specialized fabrics used primarily as reinforcing materials in tires. These fabrics enhance the tire's performance characteristics by providing dimensional stability and controlling the deformation shape of tires under different conditions. Generally manufactured from high-strength materials such as nylon, polyester, rayon, and others, tire cord fabrics are essential for ensuring safety, performance, and longevity of tires. Tire Cord Fabric Market is estimated to grow at a CAGR of 6.9% from 2024 to 2032, influenced by evolving vehicle designs, sustainability drives, material cost dynamics, and technological innovations.
Driver: Growing Automotive Industry
The undeniable surge in the global automotive industry has been the main driver for the tire cord fabric market. As per World Bank data, the number of vehicles per 1,000 people has seen a consistent rise in the last two decades. With the mushrooming middle class in emerging economies, there has been a pronounced demand for passenger cars and other vehicles. This demand directly correlates with the need for high-quality tires, and by extension, tire cord fabrics. Additionally, the evolution of vehicles in terms of weight, speed, and design requires tire reinforcement to be stronger and more flexible. This has led manufacturers to invest more in R&D to create advanced tire cord fabrics that can withstand these demands. For instance, in 2019, a leading tire manufacturer introduced a new range of tires that boasted advanced cord fabric design, ensuring 15% more longevity than its predecessors.
Opportunity: Shift Towards Eco-friendly Materials
The global push towards sustainability has opened up significant opportunities in the tire cord fabric market. There has been a discernible shift in consumer preference towards eco-friendly vehicles, including electric and hybrid cars. These vehicles demand tires with different stress-resistance, flexibility, and performance characteristics. Recognizing this, manufacturers are exploring eco-friendly materials for tire cord fabrics that not only meet the performance requirements but also align with the sustainability ethos. A European tire company recently introduced a line of eco-friendly tires reinforced with sustainable tire cord fabrics made from recycled materials, receiving a positive market response.
Restraint: Volatility in Raw Material Prices
One of the primary restraints for the tire cord fabric market has been the volatility in raw material prices. Materials like nylon and polyester are derived from petrochemicals, the prices of which are notoriously unstable, given their link to crude oil prices. For instance, between 2017 and 2018, there was a 10% increase in nylon prices due to a spike in caprolactam costs, a key raw material. This kind of unpredictability often disrupts the production chain, making it challenging for manufacturers to maintain steady profit margins or predict costs.
Challenge: Emergence of Airless Tires
A noteworthy challenge emerging on the horizon is the development and potential mainstreaming of airless or non-pneumatic tires. These tires, made from advanced polymers, are designed to be puncture-proof, reducing the need for regular maintenance. Michelin, a prominent tire company, has been at the forefront of this innovation, unveiling its airless tire prototype recently. The proliferation of such tires could diminish the demand for traditional tire cord fabrics. Moreover, with big players investing in this technology, there's potential for a market shift, pressuring traditional tire cord fabric manufacturers to innovate or diversify.
Material Type Insights
By Material Type, in terms of revenue, Polyester remained dominant, credited to its properties of high tenacity, fatigue resistance, and its cost-effective nature compared to other materials. It's been a staple for standard passenger vehicle tires for decades. However, Aramid, with its exceptional strength-to-weight ratio and resistance to high temperatures, witnessed the Highest CAGR. This surge can be attributed to its increasing use in high-performance and off-road vehicle tires where durability and performance are paramount. Nylon and Polyamide followed closely due to their excellent abrasion resistance and flex fatigue properties. Rayon, once a dominant material in the sector, observed a decline due to the rise of other synthetics, although it's still preferred for certain high-speed applications due to its adhesion qualities.
Application Insights
In the Application segment, Radial Tires accounted for the highest revenue. Their construction provides them better durability and fuel efficiency, making them a favored choice for passenger cars and light trucks. On the other hand, High-performance Tires, designed for sports cars and high-speed applications, are expected to exhibit the highest CAGR from 2024 to 2032. The increasing popularity of motorsports and luxury vehicles, coupled with advancements in tire technology, is driving this growth. Bias Tires, with their rugged design, are predominantly used in heavy-duty applications, but their market share is on a gradual decline due to the advent and popularity of radial tires.
Regional Insights
Geographically, the Asia-Pacific region was the standout in 2023 in terms of revenue, primarily due to the expansive automotive industry in countries like China, India, and Japan. The presence of key tire manufacturers, combined with growing automotive demand, reinforces the region's dominance. Europe followed closely, with countries like Germany leading the charge, driven by its luxury car segment and their need for high-quality tire cord fabrics. However, in terms of CAGR from 2024 to 2032, the Middle East & Africa is expected to take the lead. This growth anticipation comes from its booming automotive market and increasing investments in infrastructural developments which would necessitate heavy-duty vehicles and, in turn, specialized tires.
Competitive Trends
In the competitive landscape, the market had been a playground for heavyweights like Indorama Ventures, Kordsa Teknik Tekstil, Hyosung Advanced Materials Corporation, Zhejiang Hailide New Material Co., Ltd., Shenma Industrial Co., Ltd., Zhejiang Unifull Industrial Fibre Co., Ltd., Kolon Industries, Wuxi Taiji Industry Co., Ltd., Far Eastern New Century Corporation, Oriental Industries (Suzhou) Ltd., KORDARNA Plus a.s. In 2023, strategies like mergers, acquisitions, and expansion of production capacities were evident. Kordsa Teknik Tekstil, for instance, expanded its operations in the Asia-Pacific region to cater to the growing demand. Moreover, there's been a notable push towards sustainable and eco-friendly tire cord fabrics, with companies investing heavily in R&D to derive materials from sustainable sources without compromising on quality. Moving forward, from 2024 to 2032, companies are expected to intensify their focus on sustainability, technology integrations, and cater to the demand from emerging markets.
Historical & Forecast Period
This study report represents an analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends & technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. The key data points that enable the estimation of Tire Cord Fabric market are as follows:
Research and development budgets of manufacturers and government spending
Revenues of key companies in the market segment
Number of end users & consumption volume, price, and value.
Geographical revenues generated by countries considered in the report
Micro and macro environment factors that are currently influencing the Tire Cord Fabric market and their expected impact during the forecast period.
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top-down and bottom-up approach for validation of market estimation assures logical, methodical, and mathematical consistency of the quantitative data.
Market Segmentation
Material Type
Application
End Use
Sales Channel
Region Segment (2022-2032; US$ Million)
North America
U.S.
Canada
Rest of North America
UK and European Union
UK
Germany
Spain
Italy
France
Rest of Europe
Asia Pacific
China
Japan
India
Australia
South Korea
Rest of Asia Pacific
Latin America
Brazil
Mexico
Rest of Latin America
Middle East and Africa
GCC
Africa
Rest of Middle East and Africa
Key questions answered in this report
What are the key micro and macro environmental factors that are impacting the growth of Tire Cord Fabric market?
What are the key investment pockets concerning product segments and geographies currently and during the forecast period?
Estimated forecast and market projections up to 2032.
Which segment accounts for the fastest CAGR during the forecast period?
Which market segment holds a larger market share and why?
Are low and middle-income economies investing in the Tire Cord Fabric market?
Which is the largest regional market for Tire Cord Fabric market?
What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
Which are the key trends driving Tire Cord Fabric market growth?
Who are the key competitors and what are their key strategies to enhance their market presence in the Tire Cord Fabric market worldwide?
FIG. 11Market Positioning of Key Tire Cord Fabric Market Players, 2023
FIG. 12Global Tire Cord Fabric Market - Tier Analysis - Percentage of Revenues by Tier Level, 2023 Versus 2032